If you’re interested in stocks paying dividend income, here are some ideas to get you started with your search.
We ran a screen on stocks seeing rapid dividend growth, comparing the dividend over the trailing 12 months to the current year dividend estimate, with at least 15% growth. We then screened for those stocks also seeing significant net institutional purchases over the current quarter, indicating that hedge funds stand behind these names as well.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Click to enlarge
Do you think these companies will continue raising dividends? Use this list as a starting point for your own analysis.
List sorted by net institutional purchases as a percent of share float.
1. Janus Capital Group, Inc. (JNS): A publicly owned asset management holding company. Market cap of $1.22B. Dividend yield at 3.06%, payout ratio at 10.75%. Current year dividend per share estimate at $0.18 vs. TTM dividend per share at $0.10. Net institutional shares purchased over the current quarter at 6.9M, which is 3.83% of the company's 180.09M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.55). The stock has had a couple of great days, gaining 11.95% over the last week.
2. Thor Industries Inc. (THO): Manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories in the United States and Canada. Market cap of $1.31B. Dividend yield at 2.51%, payout ratio at 23.80%. Current year dividend per share estimate at $0.60 vs. TTM dividend per share at $0.45. Net institutional shares purchased over the current quarter at 1.3M, which is 2.92% of the company's 44.49M share float. The stock is a short squeeze candidate, with a short float at 12.25% (equivalent to 9.43 days of average volume). The stock has lost 21.35% over the last year.
3. Texas Roadhouse Inc. (TXRH): Operates a full-service, casual dining restaurant chain in the United States. Market cap of $971.81M. Dividend yield at 2.28%, payout ratio at 27.56%. Current year dividend per share estimate at $0.29 vs. TTM dividend per share at $0.24. Net institutional shares purchased over the current quarter at 1.3M, which is 2.18% of the company's 59.58M share float. The stock is a short squeeze candidate, with a short float at 12.97% (equivalent to 7.1 days of average volume). The stock has had a couple of great days, gaining 13.56% over the last week.
4. MTS Systems Corp. (MTSC): Supplies test systems and industrial position sensors in the Americas, Europe and Asia. Market cap of $629.01M. Dividend yield at 2.50%, payout ratio at 25.91%. Current year dividend per share estimate at $1.00 vs. TTM dividend per share at $0.85. Net institutional shares purchased over the current quarter at 322.4K, which is 2.08% of the company's 15.51M share float. The stock has had a couple of great days, gaining 12.61% over the last week.
5. Fifth Third Bancorp (FITB): Operates as a diversified financial services holding company in the United States. Market cap of $11.15B. Dividend yield at 2.65%, payout ratio at 18.13%. Current year dividend per share estimate at $0.27 vs. TTM dividend per share at $0.21. Net institutional shares purchased over the current quarter at 17.8M, which is 1.94% of the company's 916.72M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock has had a couple of great days, gaining 10.48% over the last week.
6. Gerdau S.A. (GGB): Engages in the production and sale of steel products in Brazil and internationally. Market cap of $13.33B. Dividend yield at 3.47%, payout ratio at 27.83%. Current year dividend per share estimate at $0.23 vs. TTM dividend per share at $0.18. Net institutional shares purchased over the current quarter at 19.1M, which is 1.92% of the company's 992.66M share float. The stock has had a couple of great days, gaining 10.09% over the last week.
7. International Paper Co. (IP): Operates as a paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia and north Africa. Market cap of $12.57B. Dividend yield at 3.66%, payout ratio at 27.17%. Current year dividend per share estimate at $0.97 vs. TTM dividend per share at $0.84. Net institutional shares purchased over the current quarter at 4.8M, which is 1.11% of the company's 433.47M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.2). The stock has had a couple of great days, gaining 11.12% over the last week.
*Dividend data sourced from Screener.co, institutional data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
